RIYADH: NEOM has entered into a joint venture agreement with Samsung C&T Corp. to advance the development and deployment of construction automation technology in Saudi Arabia.

This strategic partnership will unlock an initial investment exceeding SR1.3 billion ($350 million) in construction robotics. The agreement comes just a week after NEOM signed a separate deal with GMT Robotics to fast-track the delivery of its ambitious projects.

According to the statement, the collaboration with Samsung C&T will focus on automating rebar cage assembly using advanced robotic welding and tying techniques. This innovation aims to enable the creation of large, pre-manufactured reinforcement cages, a key component in construction.

Rebar cages are critical tension devices used in concrete to form reinforced structures, providing strength to infrastructure projects. “Sustainability is a core principle at NEOM, driving not only what we build but how we build it. By automating labor-intensive processes through robotics, we are pushing the boundaries of construction innovation,” said Majid Mufti, CEO of the NEOM Investment Fund.

The automated rebar assembly technology is expected to reduce manual labor by up to 80 percent, minimize material waste, enhance safety and quality, and lower rebar cage assembly costs by up to 40 percent.

NEOM also emphasized that the agreement would establish rebar cage assembly factories in the region, creating over 2,000 skilled local jobs. This move is crucial to meet the extensive construction needs for THE LINE and other key developments within NEOM.

“Developing an advanced industrial manufacturing economy at NEOM is a significant step in accelerating modern construction methods across our flagship projects,” said Bandar Ashrour, sector head of design and construction at NEOM.

“This agreement will not only boost local talent but also align with Saudi Arabia’s vision to transform the Kingdom into a leader in advanced industries, ensuring long-term economic resilience and global competitiveness.”

NEOM’s partnership with Samsung C&T marks a pivotal moment in the ongoing development of the giga-project, positioning it as a leader in advancing construction technologies.

The JV will help NEOM leverage emerging technologies and forge strategic collaborations with industry giants to revolutionize construction practices in the region. “Together, we aim to revolutionize the construction industry by incorporating cutting-edge robotics and automation solutions, which will redefine how projects within NEOM are delivered,” said Hojin Jung, president and head of corporate new business at Samsung C&T Corp.

This joint venture underscores NEOM’s commitment to transforming the construction sector and highlights its role as a frontrunner in integrating innovative technologies within large-scale infrastructure projects.

RIYADH: Saudi Arabia is emerging as a global leader in addressing labor market challenges, skill development, and workforce requalification, according to a report from the Global Labor Market Conference.

The inaugural report, issued by the conference hosted by the Kingdom’s Ministry of Human Resources and Social Development, emphasized the government’s initiatives to bridge the gap between academic qualifications and market demands. 

These efforts include enhancing education and training programs and preparing young job seekers for the rapidly evolving global labor landscape. 

The findings align with Saudi Arabia’s Vision 2030 goals, which aim to reduce unemployment from 11.6 percent in 2017 to 7 percent by the end of the decade. The strategy focuses on developing national talent, requalifying the workforce, and driving economic diversification to solidify the Kingdom’s global competitiveness. 

“Saudi Arabia has made significant strides in increasing access to education, improving quality, and promoting inclusive learning opportunities,” the report said. 

The report, based on input from 14,000 participants across 14 countries, highlighted growing global concerns about workforce readiness. Over half of respondents expressed fears that their current skills could become obsolete in the near future, underlining the urgent need for upskilling to meet the demands of a rapidly changing labor market. 

“Respondents, in fact, identified cognitive skills, management skills, as well as socio-emotional skills as the three most critical competencies to succeed in the current labor market.” the report stated. 

The study also highlighted increasing automation as a significant threat to employment across various sectors. It emphasized the growing importance of expertise in science, technology, engineering, and mathematics for success in technology-driven industries.

Although men continue to dominate STEM-related fields, the report highlighted progress in narrowing the gender gap in some countries. “For instance, India has a female graduation rate of 26 percent, followed by Saudi Arabia at 21 percent,” it said. 

The report added that these figures surpass those of European countries and the US, where rates range between 10 and 13 percent. “However, the percentage of STEM degrees obtained by women has stagnated, except in Saudi Arabia,” it stated.  

The second annual Global Labor Market Conference will take place in Riyadh from Jan. 29 to 30, 2025. The event is expected to host over 5,000 attendees, including labor ministers from 40 countries, executives, international experts, and public-sector leaders from more than 50 nations. 

Discussions will center on global labor market challenges and opportunities, further cementing Saudi Arabia’s leadership in workforce development.